Budget committee
A budget committee is a cross-functional group of senior managers responsible for overseeing budget preparation, coordinating departmental submissions, resolving resource conflicts and approving the final master budget before the period.
FrameworkBudgeting
See it move
The budget committee, chaired by the CFO, coordinates the master budget. Departments first draft their own sales, production, purchasing and HR budgets. The committee then reviews each submission, resolves conflicts such as mismatched growth assumptions, and consolidates everything into one coherent master budget, which goes to the board for final approval before the period begins.
Check yourself
A company forms a group chaired by its CFO with the heads of Sales, Operations, HR and Procurement. The group issues planning guidelines covering assumed inflation and headcount policy, reviews departmental draft submissions, challenges figures that appear inconsistent with group strategy, arbitrates disputes over shared resources and approves the final master budget. What is this group called?